ESMF - Electricity Network Reinforcement and Expansion project

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					                  ESMF - Electricity Network Reinforcement and Expansion project.


                                   EXECUTIVE SUMMARY

Introduction

The purpose of this Environmental and Social Management Framework (ESMF) is to clarify the
policies, principles and procedures that will govern the mitigation of adverse environmental
and social impacts induced by the Electricity Network Reinforcement and Expansion project
(ENREP).

It is found useful to have a policy document establishing principles and procedures that will
govern the mitigation of adverse environmental and social impacts induced by the Electricity
Network Reinforcement and Expansion project operations, to share with various stakeholders
in the power sector.

The project components under the Electricity Network Reinforcement and Expansion project
are:

   1. Upgrading Power Transmission Line project,

   2. New Expansion Power Transmission Projects, and

   3. Rural Electrification Access Project.

The Upgrading Power Transmission Line is not expected to induce significant environmental
and social impacts because the upgrading and reinforcement of high voltage transmission lines
and substations will take place on existing power system facilities and no major construction
work is intended in this project component.

The purpose of the second component, New Expansion of Power Transmission Project, is to
provide electric services to different towns and cities by construction of transmission lines and
substations in different parts of the country. Electric power transmission lines are linear
facilities in nature that may have some effect on biophysical and socio economic environment
including cultural resources. As a linear facility, the impacts of transmission line are mostly
localized to the Right-of-Way (ROW). The impact can be minimized through careful route
selection. The project will be implemented in different parts of the country and the exact
project location is not known at this stage therefore, EEPCo will be able to produce generic
environmental and social management framework at this stage.

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                  ESMF - Electricity Network Reinforcement and Expansion project.


       The main purpose of the third component, Rural Electrification Access Project, is to
       provide electric power to rural towns and villages by low and medium voltage
       distribution lines. Since distribution line follows the existing road structure no major
       adverse impact is expected.

       The rationale for preparing this ESMF is that:

 a) Most of the Project components are not expected to have significant environmental and
    social impacts. However, since one cannot be sure whether environmental impacts will or
    will not occur in all the project components, it is proposed that precautionary measures
    be taken to ensure that planned activities do not impose environmental impacts or
    negatively affect livelihoods of the surrounding population.

b) EEPCo found it useful to have a policy document establishing principles and procedures
   that will govern the mitigation of adverse environmental and social impacts induced by the
   Project operation to share with various stakeholders in the power sector, and

c) Ensure that investments are carried out in an environmentally and socially friendly and
   sustainable manner.

Thus, this ESMF will be used for the Project components under the Electricity Network
Reinforcement and Expansion project.

The safeguard category of the project is B since there are no significant and/or irreversible
adverse environmental and social issues in components financed under the project. The
project upgrades the existing transmission line network in selected cities and rehabilitates
existing substations which have saturated their capacity to supply additional load.

The Implementing Agency

Ethiopian Electric Power Corporation (EEPCo) is the implementing agency under the Ministry of
Water and Energy (MoWE).

Legal and Institutional Framework

There is sufficient legal and administrative ground considered, in this Framework document, for
environmental and social management in the process of implementation of development
projects.




EEPCo, Power System Planning /PSP/              December 2011                              Page 2
                   ESMF - Electricity Network Reinforcement and Expansion project.


The Framework considers both the Ethiopian and the World Bank (WB) legal documents and
guidelines.

The Constitution of the Federal Democratic Republic of Ethiopia (FDRE) has adequate provisions
on environmental and compensation aspects. Based on the Constitution, the Environmental
Policy of Ethiopia, Proclamations on Environmental Impact Assessment (EIA), Pollution Control,
Land Expropriation and Compensation and others have been issued to strengthen the sporadic
efforts of environmental protection in a coordinated and standardized manner. In addition,
Sectoral Environmental Guidelines and Manuals have started to be produced in different
sectors and the Ethiopian Electric Power Corporation (EEPCo) is part of this endeavor.

The WB’s Policies, specifically the Safeguard Policies and the updates have been made use of
for the preparation of this Framework document. The Policies include those on Environmental
Assessment (EA), Involuntary Resettlement, and Physical Cultural Resources.

Concerning the institutional arrangement, the Government of the FDRE has established the
Federal Environmental Protection Authority (FEPA) along with Regional Environmental Bureaus
and it is under process to realize the establishment of Environmental Units within sectoral
ministries and organizations. Ministry of Water and Energy has established Environmental
Monitoring Unit and EEPCo’s Power System Planning comprises Environmental and Social
Experts to address Environmental and Social issues in its activities.

Project Description

The Electricity Network Reinforcement and Expansion project would have four major
Components:

     1. Upgrading Power Transmission projects,

     2. New Expansion Power Transmission Project, and

     3. Rural Electrification Access Project.

1.    The Upgrading Power Transmission Line projects focuses on upgrading the high voltage
      Transmission line and substations in the northern, eastern, western, southern and central
      part of the country with the following major interventions:



EEPCo, Power System Planning /PSP/               December 2011                          Page 3
                    ESMF - Electricity Network Reinforcement and Expansion project.


                 Line Stringing on existing steel towers.

                 Erection of substation equipments.

         Substations upgrading and rehabilitation aims at rehabilitating and upgrading of existing
         substations to enhance reliability of the transmission system and the capacity of the
         substations to new connections.

2          New Expansion Power Transmission Project: Under this project component
           transmission lines with different capacities (400 kV, 230 kV, 132 kV and 66 kV)
           intended to be constructed. The project will be implemented in different parts of the
           country.

           The major works in this project component are:

                   Transmission Line stringing,

                   Erection of transmission steel towers, and

                   Erection of substations

Under this project component there are substations construction works. Substations with
different capacity are intended to be constructed in different parts of the country. The main
works in this project component will be civil works and installation of substation equipments.



 3.      Rural Electrification Access Project: is a project under the Universal Electrification Access
         program (UEAP) is designed to enable towns and villages to have access to electric
         supply through low and medium voltage distribution lines.

      The key components of rural electrification include the following:

                 Erection of concrete poles,

                 Stringing of overhead medium and low voltage distribution lines, and




EEPCo, Power System Planning /PSP/                December 2011                               Page 4
                  ESMF - Electricity Network Reinforcement and Expansion project.


               Installation of pole mounted              distribution    transformers   at   the
               towns/villages/load centers

Baseline Environment

   Ethiopia is sub-divided into nine Regional Administrations and two Metropolitan City
   Administrations under the Federal Government. However, the Regions do not have the
   same environment. The country has topographic and altitudinal diversity, different climate,
   vegetation, wildlife, geology, human settlement and occupation.

   The target sites where the project components are planned to take place have different
   topography and climate.

Analysis of Alternatives

Do Nothing Option

   Under the “do nothing” option, overloading and increasing unreliability of the transmission
   system will lead to consumers opting for additional or alternative energy sources. For
   businesses, this would lead to the installation of diesel generators at a direct cost to the
   economy and increasing the reliance on fossil fuels.

   At the household level, many of the smaller households still rely on fuel wood for cooking
   and heating. Any further degradation in services will escalate this demand, putting ever
   greater pressure on the woodlots and natural forest supplying in the major urban centers.

Alternative Energy Sources

   The New expansion, upgrading and rehabilitation of the existing system does not preclude
   the introduction of alternative or supplementary energy sources or energy saving
   technology. However, at present there are no widely or economically available systems that
   can entirely replace the existing system at household level or industrial level.




EEPCo, Power System Planning /PSP/              December 2011                            Page 5
                  ESMF - Electricity Network Reinforcement and Expansion project.



Rural Electrification Project

Do Nothing Option

       The present pattern of rural energy consumption system will continue with increasing
       environmental and social costs, as wood fuel becomes rare and therefore more difficult
       to obtain. This is not considered to be the best option.

Diesel Generation

       Another alternative would be to install diesel generators in rural centers. This has been
       done in some villages/towns with specific requirements, and will continue to be an
       option considered for more remote areas where the cost of installing distribution lines
       would be too expensive.

       However, the economic (operating or long-run) costs of diesel generation would be
       higher than the proposed ICS.

       In addition, diesel generation relies largely on the continued importation of fossil fuels,
       contributes to increasing road traffic through fuel deliveries and has other negative
       impacts including air pollution through emission of toxic substances (with long life) into
       the atmosphere.

       Diesel generation is also not that friendly due to its noise pollution.


Strategic Environmental Impact

   The project components are formulated to provide to the communities in the country with
   reliable electric supply at low cost.




EEPCo, Power System Planning /PSP/              December 2011                             Page 6
                   ESMF - Electricity Network Reinforcement and Expansion project.


Positive Impacts

The Access Expansion and Reinforcement of Electricity Network project

   The Access Expansion and Reinforcement of Electricity Network project is a development
   project designed for the benefit of the population of the country, and is likely to have the
   following overall positive impacts:

            Relieve pressure on biomass resource of the country and thereby reduce the loss
            of the biodiversity by providing alternative and reliable source of energy.

            Improve access to social services (education, health, water supply, etc).

            Stimulate economic development, and

            Provide job opportunities thereby creating income generation means for the
            respective communities in the project areas.

Negative Impacts

    Electricity Network Reinforcement and Expansion project

   As a result of the planned new construction activities, potential negative environmental
   impacts are likely to occur and the impacts may include initiation and aggravation of soil
   erosion, loss of vegetation, air, and water and soil pollution.

   These are however preventable, manageable and reversible.

   During the construction works, dust emission may be produced. Similarly, noise pollution
   arising from construction works may disturb the neighboring communities and local fauna
   temporarily.

   The major negative impacts anticipated in this regard include expropriation of land along
   the transmission, distribution route lines and power substations. That is, the farmers and
   urban dwellers may lose their crops, houses, and other properties temporarily or
   permanently.

   Although it is proposed that it would follow as much as possible, the existing road network,
   the transmission lines and distribution lines (in the case of rural electrification) may

EEPCo, Power System Planning /PSP/               December 2011                          Page 7
                 ESMF - Electricity Network Reinforcement and Expansion project.


   traverse, in some cases, looking for shorter distances, which affect culturally sensitive sites
   like graveyards, archaeological sites, etc.

   The existence of PCB chemicals in transformers and capacitors, as one of the environmental
   impacts is also anticipated during the project life. Disposal of old transformers containing
   PCB will be handled in accordance with national and international guidelines.

Proposed Mitigation Measures

   Upgrading and Rehabilitating the Power Transmission System

   To mitigate impacts arising as a result of the project and sub-projects, the Project will take
   the following measures:

         Influence the adaptation of a transmission and distribution line route with minimum
         effect on the bio-physical as well as the socio economic and cultural environment;

         Ensure the safe disposal of chemically treated poles at its storage facilities;

         Safe disposal of transformers that may contain PCBs;

         Employ and deploy manual labor to maintain the access roads and right-of-ways, as
         appropriate;

         Regularly monitor the process of upgrading and rehabilitation works of substations
         to avoid any oil or waste water leakages;

         Include Environmental Clauses for Contractors (Annex) in the contract documents
         and monitor their implementation;

         The compensation for land and properties will be implemented as per Proclamation
         No. 455/2005;

          Project affected people will be consulted and be involved in decision-making at
         different stages of the Project;




EEPCo, Power System Planning /PSP/             December 2011                               Page 8
                    ESMF - Electricity Network Reinforcement and Expansion project.


             PCB-free transformers and capacitors will be ordered and the import process be
            followed strictly prior to project implementation; and

            Route alignment should avoid cultural sensitive areas during surveying and inform
            the Authority for Research and Conservation of Cultural heritage (ARRCH) upon
            discovery of ancient heritage, relics or anything that might or believed to be of
            archeological or historical importance during the execution of works.

Environmental Cost Estimate

      The total budget cost for environmental and social monitoring, compensation payment,
      consultancy service for the preparation of RAP and ESIA (where it is required) for project
      components, and cost for capacity building/training for the environmental and social
      experts of EEPCO is about USD 1,849,937.00
       (Birr 32,338,193.72). The cost estimates are based on the past experience of EEPCo’S
      transmission line and rural electrification projects.

      The estimated cost for environmental monitoring, escalating and updating from 2010 cost,
      is about USD 25,000.00 (Birr 437,017.50) and this is assumed to enable the Environmental
      and Social Experts of EEPCo to conduct periodic monitoring works on project sites.

      The training cost is derived from the Energy Access Project financed by the WB and adding
      inflation rate.

The cost breakdown for the project presented below.

No.       Compensation Items                    Cost in USD             Cost in Birr
1         Monitoring cost                       25,000.00               437,017.50
2         Consultant Fee                        400,441.63              7,000,000.00
3         Training cost                         239,960.01              4,194,668.95
4         Compensation payment                  986,327.82              17,241,700.31
          Sub Total                             1,651,729,.46           28,873,387.17
5         Administration cost/2% of total       33,034.59               577,467.76
          cost/
6         Contingency cost/10% of the total     165,172.95              2,887,338.79
          cost/
          Sub Total                             198,207.54              3,464,806.54
          Total                                 1,849,937.00            32,338,193.72



EEPCo, Power System Planning /PSP/                December 2011                          Page 9

				
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